Everything you need to know about how to managing payroll variations with Factorial ๐Ÿง

In Factorial we know that managing payroll is one of the most complex and laborious processes in the world of Human Resources, and that's why we want to help you out! ๐Ÿ’ช

The number of special conditions that may affect your company's payrolls can be overwhelming and often difficult to manage. Luckily, Factorial gathers employee payroll information into one place so you can easily review and export the data whenever you want. 

Who can access this functionality?

This functionality is available to all companies using Factorial HR. The payroll process is managed in a completely different way for users of the Legal plan, which is why this functionality is not available to them.

In addition, only administrators have access.

How does the Payroll section work?

In the Payroll feature, you will have the option to create payroll variations about employees that have a payment frequency not only monthly, but also semimonthly and weekly.

Therefore, if your company manages weekly payslips, you will be able to do it! By selecting the "weekly" filter, and the same if it is monthly or semimonthly. 

How do I configure the payment frequency? 

There is something you should do first. 

Go to Employees > Select the employee you want to update the payment frequency > Personal> Payment frequency. You will see that you can select all three options (monthly, semimonthly and weekly). 

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Once the payment frequency has been updated, you can return to the Payroll section, and you will see that by selecting "Weekly" in the payment frequency selector, you will be shown the employee we have updated. 

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What else will I find in this functionality?

New registrations, medical leaves, terminations, and contract updates are some of the situations that arise every month; each instance has a direct impact on your company's payroll. Factorial makes it easy for you to view and manage this information so it is always accessible and up-to-date.

As you, your managers and employees record your activity in Factorial, the data gathered is automatically grouped and classified in the Payroll section. With all the information in one place, you can then view the payroll, and identify for a specific month, the number of sick leaves, new hires, and more!

To consult this information, you simply have to access the Payroll section of the menu on the left-hand side. Then, you can select the month you wish to review, by choosing the month (found in the top horizontal menu bar). If you have not done so yet, click on the "Enable this month" button.

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Also, whether you are making the payroll inhouse or outsourcing, Factorial helps you eliminate the chance of human errors. From your Payroll section, you can easily export all the information into an excel format.  Will this data, you can share it with your management consultancy, who makes your payroll or use it in house, to assist whoever is responsible for payroll 

Useful, right? ๐Ÿ˜Ž

What information can I find in the Payroll section and how is it managed?

Once inside the Payroll section, you will see a table with different tabs, corresponding to each type of payroll situation (ie. sick leave) you may encounter.

To better understand how it works, let's make a list of everything you can find in this section and share with you how it gets there.

1. Variable compensation

Have any of the employees working overtime? Do you want to pay extra or bonuses when your employees meet specific objectives? You are in the right place!

Here you can assign extras and bonuses to your workers for the corresponding payroll period. You can do this either individually from the platform or using our Excel template to import them in bulk. From the spreadsheet, you can assign an amount, a currency type, and a description to each section you want to add. Once complete, you are ready!

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2. Changes in salary and contract

Have you increased the salary of your workers? ๐Ÿ’ฐ Have you hired an intern?

Each time you create a new version of a contract for an employee, the changes made will be reflected in the Salary and contract tab of the corresponding month, depending on the effective date of the changes made.

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3. New hires

Are you bringing on new hires? Great!

As the name of the tab indicates, here you can see everyone who has joined your company during a specific month.

Each time you add an employee to your Factorial account and fill in their start date, this new information will appear in the payroll section, along with their most relevant personal data and their contact information.

4. Terminations

It's not always all good news ...

In the same way, you can view information on new hires, you can also easily view any terminations that have occurred.

Every time you terminate the contract of an employee in Factorial, you can find the information regarding the variation, depending on the end date of the contract, in the Terminations tab. For example, if the employee receives the notification of their termination in November, but their contract ends in December, the termination will appear under the month of December.

5. Sick leaves

Is anyone sick? ๐Ÿค’ Has the family grown? ๐Ÿฃ

If your workers have requested work or parental leave through Factorial, these requests will appear in the Sick leave section under the corresponding months. 

Important! Remember that, in order for sick leaves to be displayed in the Payroll section, medical leaves must be requested using the absence types, Sick leave, or Parental leave, which Factorial offers by default. If you use absence types created by you, they will not appear here.

Keep in mind that medical leaves can be created without an end date and updated once the worker is discharged by the medical system. 

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Can I download a payroll variations summary?

Of course! This is very simple.

All you have to do is select the month in which you wish to extract the data, and click on the download button located in the top right corner. An excel document will be downloaded automatically with all the information found in this section of the platform.

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You can share this file with the person responsible for making your payroll (either a consultancy or someone from your company). In this way everyone will work with the same information, making it easier to avoid possible errors.